Low prices abroad fuel rubber imports' surge

May cross 300k tonnes this year

Imports of natural rubber rose 91 per cent in February on a year ago at 18,141 tonnes, said the Rubber Board.  This is because of the much lower prices. Tuesday’s price here for the benchmark RSS-4 grade was Rs 146 a kg; the Bangkok market offers SMR-20 grade, equivalent to RSS-4 for most practical  purposes,  at Rs 116 a kg. RSS-4 is available at Rs 136 a kg there. This price advantage has been for 15 months.

Overall imports during April–February (11 months) of the current financial year rose 44 per cent to 298,877 tonnes against 207,443 tonnes a year ago. This indicates total imports in the current financial year will cross 300,000 tonnes.

The steep fall in production for the earlier 10 months continued in February, with the month’s output down three per cent, 60,000 tonnes as against 62,000 tonnes a year before. Consumption rose five per cent, to 78,000 tonnes, showed Rubber Board data.

Total output for the 11-month period of April 2013–February 2014  fell nine per cent to 783,000 tonnes as against 860,200 tonnes a year before. Cumulative consumption recorded a very  thin fall, 0.4 per cent, to 888,520 tonnes. Export has seen a steep fall — 5,365 tonnes in April-February, as compared to 22,771 tonnes in the same period of 2012-13.

Export in February was barely eight tonnes, as against 7,139 tonnes in February 2013.